Global Oil Demand to Reach Record High in 2023 Despite Supply Shock and Production Cuts

The International Energy Agency (IEA) has predicted that global oil demand will reach a record high of 101.9 million barrels per day (bpd) this year, driven by resurgent Chinese consumption. Non-OECD countries, led by China, are set to account for nearly 90% of demand growth, while OECD demand has been underwhelming in recent months. The IEA has warned that supply could struggle to catch up with this growth, especially after the surprise OPEC+ cuts, which risk exacerbating a supply deficit expected later this year.